from local units,” says Shakeel Qallander, President FCIK. “This is despite the fact all the components used in the scheme are being manufactured in Kashmir.”
“For every tender, they have set the condition of a turnover in excess of 200 crore rupees with previous experience,” says Khatib. “Everybody knows how we have been surviving against all odds on low margins and less work.”
To redress this problem, government had inserted a clause for outside contractors that made procurement from Kashmir based SSI units mandatory. A MoU was also signed between MD PDC and contractors wherein the latter agreed to purchase equipment from Kashmir. “But the MoU was never adhered to and these contractors get labour as well as material from outside,” says Khatib.
Recently PDD purchased 40,000 steel tubular poles for Ladakh region from a Faridabad-based factory. “This is despite the fact that thousands of such poles are lying in our factories across Kashmir,” Khatib rues.
The situation prevails despite no-compromise on quality by Kashmir based units. Whatever little material that PDD procures from Kashmir-based units is at par with top industries in India.
“Our equipment gets tested from the same testing laboratory from where Bharat Heavy Electrical Limited (BHEL) gets its equipment tested, so there is no compromise on quality,” says Khatib.
The equipment manufactured by Kashmir-based units is tested by Vadodra based Electrical Research and Development Association and Central Power Research Institute Bhopal. A team of Directorate General of Supplies & Disposal from Jallandhar also visits the factories regularly.
Kashmiri manufacturers of electric appliances and electricity transmission material have an impeccable record of zero complaint regarding their products. One of the companies at Rangreth, Alba Power, has even supplied electric transformers to Rajasthan electrical board, after the unit won the tender in an open competition. The unit primarily manufactures steel tubular poles, distribution transformers and ACSR conductors besides other hardware.
Northern Transformers, another manufacturing unit in Kashmir, made a 6.3 MW transformer four years ago. Till date, the manufacturer has not been able sell it to the power department. During this time the department has procured 28 such transformers from Jammu based units for use in Kashmir division.
While traders believe that the procurement offices might be shifted after elections, there seems to be no such indication from the government side. When contacted, commissioner secretary Power, Sandeep Nayak said that no such decision had been taken yet. Though he confirmed that some suggestion had been made by FCIK to Chief Minister in this regard, he declined to comment on whether government has discussed the suggestions or not. The traders in Kashmir allege that Jammu lobby is going all out to destroy their industry.
The second largest consumers of their products – telecommunication companies – have also stopped procuring material from them. “Telecom companies like BSNL, Airtel, Aircel, Reliance and others have sent instructions to their contractors who construct towers in Kashmir that they should procure material from Jammu based units,” alleges Imtiyaz Ahmad, proprietor of Northern Transformers. “Now we have to sit idle as one after other our customers are being snatched with force.”
FCIK has now asked government withdraw the benefits in the shape of tax concession of low power tariffs to these telecom companies. “Why should government provide them such benefits when they generate so much of revenue from here without contributing anything to local economy,” says Shakeel Qallander.
“They have shifted head offices, BPO’s and almost every job to Jammu followed by exclusion of our manufacturers,” adds Khatib.
FCIK alleged that year 2008 has been worst for electric industry in Kashmir. “We are still not able to understand how Jammu based office of PDD executed tenders during 2008 in which we were simply left out,” says Shakeel Qallander, chairman FCIK. “There was lot of irregularity in it.”
For the renewal or new contract licenses too, the traders have to go to Jammu as the inspection office is also permanently stationed there. “For Rs 300 license, we have to spend Rs 10,000,” says Imtiyaz Ahmad.
Estimates suggest that SSI units manufacturing electric appliances and transmission material in Kashmir at present produce only 25 per cent of their installed manufacturing
